Homebase owner to close 60 stores

PA

The new owners of Homebase reveals plans to close up to 60 points the next week, putting up to 1,500 jobs at risk.

Restructuring company Hillco, which bought the chain of diy for £1 in May, will outline the plans of the rescue deal next week, according to reports.

Hillco bought the fight chain, from the Australian firm Wesfarmers after its disastrous foray into the UK market.

Homebase has around 250 shops and 11,500 employees.

The closure plan was revealed by Sky News, which said that Hillco is to propose an insolvency mechanism called the Company Voluntary Arrangement (CVA) at the beginning of next week.

The BBC understands that approximately 60 stores were identified for closing, which have, on average, about 25 staff for the store.

A number of dealers have used Cvas as a step short of going into administration, including House of Fraser and Mothercare.

Wesfarmers bought Homebase in 2016, and the renovation of Homebase stores under the Bunnings brand.

But the Australian firm has admitted making a number of “self-induced” errors, including underestimating the winter demand for the heating elements, as well as dropping the popular kitchen and bathroom ranges.